The good, the bad and the ugly truth on my vendee offer!

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The good, the bad and the ugly truth on my vendee offer!

Sang Yi
Member since 2021 · 32 posts · 5 votes

Made an offer last month thinking it's vendee financing. 

Built 2017, 2000 sq, good location with school district in las Vegas. Listed at $278k. I sent a offer at listing and received this email below:

We would like to emphasize that the property is currently occupied. This is an AS IS sale with the following conditions:

  • Buyer would be responsible for eviction
  • No inspection
  • No appraisal
  • No Contingencies
  • Cash only. Hard Money may be considered if lender does not require interior access.

I understand the confusion. This is a unusual situation. Because the property is occupied, it will not be possible for an inspector or appraiser to access the property. Most lenders require an inspection and/or appraisal to justify the loan value. That’s why the only offer terms that can be accepted in this situation would be a cash or hard money offer with no contingencies.

I really believed at that time the property was easily $350k. How do you go about this without having 300k cash on hand??


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  • Nick C.
    Investor · Tampa, FL · Member since 2011 · 2k+ posts · 3k+ votes
    5y

    This situation is not that unusual, happens all the time. If you don't have $300k cash on hand you'll have to find a hard money lender to do the deal. 

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  • Evan Polaski
    Cincinnati, OH · Member since 2020 · 4k+ posts · 3k+ votes
    5y

    @Sang Yi,Nick answered your question: you find the cash through investors, or you get a hard money loan that can close quickly.

    The bigger issue, outside of your question: why aren't you being given access to look at the property?  I have sold many occupied rentals, and the buyer ALWAYS has the ability to enter the units.  There could easily be $100k+ of damage to the interior of the property, and the seller knows it, which is why no access is given.

    I cannot speak for Nevada laws, but all of my leases state that I can gain access to a property with 24 hours notice.  I can understand not letting showings happen while occupied, but you are basically buying a property sight unseen.

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  • Sang Yi
    OP
    Member since 2021 · 32 posts · 5 votes
    5y

    Hard money lender just sounds frightening to me. About the walk thru inspection..i was to believe that was the case but the email above states why it can't happen. At first, I'm thinking newer home so how much damage can it be done in a year but yes, it's scary to think about the damages.

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